Auction Tips

So, you’ve found a property (or even multiple properties) that you’re interested in. There’s space for all of your various knick-knacks, it’s close to the local shops and transport routes and there are plenty of sun-soaked window sills for your cat to snooze on. Now what? Well first, you’ll want to get an idea of how much the property is expected to sell for. The unique thing about Auctions however is that you don’t have access to the final price at the outset, and it’s not the seller’s obligation to inform you of the reserve. So here’s some tips on how to prepare for attending an Auction:

1. Do Your Research & Ask For Advice
Research comparable properties in surrounding areas and educate yourself on where the property you are interested in should sit in the market. By doing this initial research and speaking with your Agent you will know where you stand and it may even result in a new Auction budget, higher or lower than you had originally planned.

2. Get An Inspection
It is always best to get a building and pest inspection done prior to the big day. A thorough inspection can identify any current or potential issues with the property, and help you decide whether or not it’s the right purchase for you.

3. Preparation = Success
Don’t forget, the winning bid at an auction results in a binding contract and if you are the winning bidder, your finances must be in order before auction day. Investigating all of your finances in advance will result in a more strategic auction budget and price guide as well as cement your confidence when bidding. You will also need a written loan approval before the day of the auction and deposit which is usually 10 per cent of the purchase price

4. Know Your limit
One of the most important Auction tips is to keep your emotions in check. You have to remember that you are making a significant financial investment which is why having your finance pre-approved is advisable. You can speak with our in-house Loan Market Broker Steve Stasce to know precisely how much you have or can borrow, that way you can realistically set your budget.

5. Check Out Other Auctions
It’s always recommended that you try to attend other Auctions in advance so you are aware of how the process works, therefore when your Auction comes around you will have a better understanding of how the day will unfold. Familiarise yourself with strategies of bidders, the procedures, rules and regulations.